Hoarding of new currency partly responsible for note crisis in some states

Hoarding of new currency partly responsible for note crisis in some states
Hoarding of new currency partly responsible for note crisis in some states

New Delhi:  The recovery of large amount of  new currency notes from a few individuals  in some southern cities  confirms the doubt in some government and non-government circles that attempts by some people to hoard them  is a major cause of cash shortage in bank branches and Automatic Teller Machines (ATM). The fear that it may be just a tip of the iceberg has caused additional worry to the government and the common men .

While posing a serious challenge to the Income Tax and other authorities, these incidents  nail the  opposition propaganda that the government was ill-prepared and that it is solely responsible for the cash crunch . Clearly, the crisis is partly man-made.

The development raises a question mark over the role of  some bank employees whose integrity seems  to be doubtful. Some banks have already ordered  inquiry against their officials. Some other disclosures may be also made and some more skeletons may tumble out from the cupboards.

The government has itself admitted that  it is an enormous  task, to replace 86 per cent of currency notes which were  of high values and  which were in circulation before ban,  that too at a short period of time. It may become more difficult if some people hoard the new notes.

So far new notes of Rs 2000 totalling  over Rs four crores have been seized. The total has  gone up  to Rs six crores by adding seized old notes which were banned. Four persons, two engineers and two contractors, have been identified in this connection. The engineers were government employees and contractors were registered with the government.

These seizure’s were made following raids at  three  places, Bengaluru, Chenai and  Erode during last two days.  Gold and jewelleries  were seized in addition to currency notes. The official team which raided their hide-outs have identified additional  ten persons who may be hoarding new notes.

When contacted ,a finance department official said on Friday that it is difficult to give a precise time and date by which the cash supply situation will be normal. ” Printing of  currency notes is  time consuming because of safety condition. We are doing whatever is possible to do in this connection”, he assured.

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